“With global strategy, a business has operations in multiple countries with the same business-level strategy in each country” (Ahlstrom & Bruton, 2010, p.147). Based on this definition, FCL’s global strategy can rely on its current business model which contains various fundamental elements needed for global expansion.
Like diversification in organic growth, the vertical integration of FCL increases corporate scope and capture more of the profits in a value network (Johnson et al., 2014). FCL plans vertical integration into travel operations through acquisition (Travel Bulletin, 2013). This acquisition of Travelplan Corporate Limited, from the Abbey Travel Group is a cost-effective, profitable and low-risk entry to Ireland (BRW, 2014), enables …show more content…
FCL achieve this by a combination of many unique approaches including share ownership and special organizational structure of family, village and tribe.
Local ownership by individuals
As can be seen clearly that FCL ownership model is entrepreneurial businesses. Typical company applied this model of ownership and gain huge success such as Laskshmi Mittal remains chairman and chief executive of his creation, Arcelor Mittal, the largest steel company in the world (Johnson et al., 2014). The similar case happens to FCL. In all ownership areas, they have global consistency (Flight Centre, n.d.)
Furthermore, the mode of share ownership at FCL allows their shop managers or other senior staff to take part in the profit improvements of particular business units (Travel Daily, 2014). People come to realise that their daily choices affect share performance. Each team member benefits from helping the company achieve profits, and can also see how the company’s prosperity is tied to their own (Blake, n.d.). There, employees see they have opportunity to grow and move forward with FCL, they continuously make meaningful contributions to the success of FCL (Go2HR, …show more content…
FCL is proud of their distinctive informal organizational structure which is established based on the anthropologist theories of family, village and tribe (Jauhari, 2008). The model enables amazing results for the global executive team, the people working across the brands, and the millions of clients served by Flight Centre (Corporate Traveller, 2014). Their structure is simple, lean, flat and transparent, with accessible leaders (Annual report) The structure is natural and allows for unlimited growth to occur in an organic way, while maintaining the small, empowered teams that are central to Flight Centre’s success. Long-term success and ongoing growth are achieved through a structure that addresses basic human needs (Blake,
Like diversification in organic growth, the vertical integration of FCL increases corporate scope and capture more of the profits in a value network (Johnson et al., 2014). FCL plans vertical integration into travel operations through acquisition (Travel Bulletin, 2013). This acquisition of Travelplan Corporate Limited, from the Abbey Travel Group is a cost-effective, profitable and low-risk entry to Ireland (BRW, 2014), enables …show more content…
FCL achieve this by a combination of many unique approaches including share ownership and special organizational structure of family, village and tribe.
Local ownership by individuals
As can be seen clearly that FCL ownership model is entrepreneurial businesses. Typical company applied this model of ownership and gain huge success such as Laskshmi Mittal remains chairman and chief executive of his creation, Arcelor Mittal, the largest steel company in the world (Johnson et al., 2014). The similar case happens to FCL. In all ownership areas, they have global consistency (Flight Centre, n.d.)
Furthermore, the mode of share ownership at FCL allows their shop managers or other senior staff to take part in the profit improvements of particular business units (Travel Daily, 2014). People come to realise that their daily choices affect share performance. Each team member benefits from helping the company achieve profits, and can also see how the company’s prosperity is tied to their own (Blake, n.d.). There, employees see they have opportunity to grow and move forward with FCL, they continuously make meaningful contributions to the success of FCL (Go2HR, …show more content…
FCL is proud of their distinctive informal organizational structure which is established based on the anthropologist theories of family, village and tribe (Jauhari, 2008). The model enables amazing results for the global executive team, the people working across the brands, and the millions of clients served by Flight Centre (Corporate Traveller, 2014). Their structure is simple, lean, flat and transparent, with accessible leaders (Annual report) The structure is natural and allows for unlimited growth to occur in an organic way, while maintaining the small, empowered teams that are central to Flight Centre’s success. Long-term success and ongoing growth are achieved through a structure that addresses basic human needs (Blake,